Report status to the client at offer, contract, and closing
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the lawyer's notes, list the stage, the open items, and the dates. Flag a foreign seller as a § 1445 question and stop. Do not state whether withholding is due.
- What the lawyer must review
- Model Rule 1.4(a)(3) requires you to keep the client reasonably informed, and Rule 1.4(b) requires an explanation sufficient for an informed decision. You edit every sentence that states a legal conclusion. If the seller is a foreign person disposing of a United States real property interest, § 1445(a) generally requires the transferee to withhold 15 percent of the amount realized. The IRS page states that rate for dispositions after 16 February 2016 and says the buyer is the withholding agent in most cases. Section 1445(b)(5) is an exemption for a residence where the amount realized does not exceed $300,000. A reduced 10 percent rate is stated for a residence where the amount realized does not exceed $1,000,000 and subsection (b)(5) does not apply. You read the conditions before applying either. Formal Opinion 512 applies to the draft.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes identifying points for review. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.
Forms and precedents for this task
| Form or precedent | Kind | AI use | Summary |
|---|---|---|---|
| Buyer issues report on a purchase contract (United States) | Letter | AI use Yellow | A letter that reports to the buyer what the due-diligence checklist found on title, lead-based paint, FIRPTA withholding, and loan disclosures, in the lawyer's own conclusions. |
Signed-in accounts can read the full text of each one. All precedents.